As The New Republic reports, unions continue to resist any tax on private health insurance benefits, even if only top-end benefits, and Senate Finance Committee Chairman Max Baucus continues to not clearly hear Majority Leader Harry Reid’s telling him to stop chasing GOP votes.
I think Baucus has a good idea on this one, whether or not it’s for chasing GOP votes. And, while I support the need for unions — and strong ones — in many ways, American unions have opposed national healthcare for nearly 60 years now, ever since Harry Truman made a serious push for it. Unions have always, ever since getting generous health insurance in WWII, regarded insurance benefits as a recruiting tool. Well, with private sector unionization in single digits, that’s not working too well, is it?
Elsewhere, Cohn makes a good case for at least some tax on the benefits. And, I’ll add to it. Remember, these benefits replace pay raises that couldn’t be awarded during WWII, so we have good reason to treat them like pay. And, if we did so, the gig would be up for insurance companies getting a tax-free ride, too.
But, if you’re NOT going to tax healthcare benefits, then what? Well, Senate Democrats are batting that one around. High-end income tax? New “sin” taxes? Smoke and mirrors?
The real problem was that stuff that should have been hammered out behind closed doors between Reid, Baucus, Heath, Education, Labor and Pensions Chairman Ted Kennedy’s No. 2, Chris Dodd, and a group of no more than four-five other Senators, plus a high-level Obama representative, all in one room.
Not getting Team Obama to commit to getting its legislative hands at least a bit soiled was part of the problem. Team Obama not getting itself to have one voice is even worse.
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